Bitcoin Price Touched $23,300, Will The Bearish Thesis Be Invalidated?


Bitcoin price managed to reach above $23,000 and maintain its momentum. Over the past week, the currency has shown upward momentum. In the past 24 hours, Bitcoin has shown a slight uptick, however, it has held steady above the local support level.

The technical look of the King’s coin also indicated that the bulls had taken control. If the bitcoin price can break above the $24,000 price mark and trade there for an extended period of time, the bulls could gain more traction.

The cryptocurrency has struggled to stay above the $24,000 price level for a long time.

Buyers have also returned to the market helping Bitcoin to continue its bullish hypothesis. However, there is always the possibility that Bitcoin will fall back on its chart if it trades below the $24,000 mark long enough. In this case, BTC may find support between $22,000 and $21,000 during the following trading sessions.

Bitcoin Price Analysis: Four Hour Chart

Bitcoin price
Bitcoin is priced at $23,300 on the 4-hour chart | source: BTCUSD on TradingView

BTC is trading at $23,300 at the time of writing. In the past week, the price of Bitcoin recorded a rise of nearly 11% which helped buyers return to the market. Once the demand increased, the price of Bitcoin also showed an increase.

The current price action can also be described as a relief, because the moment the bitcoin price reached the $24,000 mark, the coin recovered on its chart. BTC’s upper resistance is at $24,000, which is an even higher boost ensuring that BTC touches the next price ceiling.

In order for the bearish thesis to be considered invalid, BTC must recover $28,000. A drop from the current price mark could pull the coin back to $22,000 and then back to $20,000. Bitcoin trading volume increased in the last session indicating increased buying pressure in the market.

Technical Analysis

Bitcoin price
Bitcoin showed an increase in buying power on the four-hour chart | source: BTCUSD on TradingView

The currency managed to maintain its upward trend due to the increase in the number of buyers. The technical outlook painted a similar picture on the four-hour chart. Bitcoin price has risen slightly in the past 24 hours as the coin has seen an increase in buying pressure during the similar time frame.

The RSI crossed half of the line indicating that there were more buyers than sellers in number at the time of publication. Bitcoin price was above the 20-SMA line which also indicates that buyers were driving the price momentum in the market.

Related reading | TA: AVAX struggles to stay above resistance as it looks to $40

Bitcoin price
Bitcoin is blinking a buy signal on the 4-hour chart | source: BTCUSD on TradingView

BTC major indicators have shown a steady upward momentum. Once the buyers returned, the signal to buy the coin also appeared. Moving average convergence divergence depicts price momentum and trend in the market.

The MACD underwent a bullish crossover and displayed a small green signal bar associated with a buy signal.

The directional movement indicator reads the direction of the price and if the momentum is gaining strength. According to the DMI, the +DI line was above the DI- line, which indicates a positive price action. However, the average trend indicator (red) has lost steam as it fell near 20 marks which indicates weak price momentum.

Related reading | Why the Crypto Fear and Greed Index Indicates a Sustainable Recovery

Featured Image From UnSplash, Charts From TradingView.com



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